Affordable Homes in the Carson Valley Under $250,000!

What makes a home affordable? One opinion could be simply whether a prospective buyer can afford to purchase the home based on his or her individual finances.

Before the market went crazy in 2003, there was a formula to determine whether or not a person could afford a home. Lenders strayed from this formula (for reasons I will not endeavor to explain here) but the good news is, the basic formula and idea of how to determine a person’s affordability index is back!

What is affordable? The tried-and-true rule involves just a couple of ratios. The first is your debt-to-income ratio which should be no more than 36%. When figuring your housing payment-to-income ratio, it should be between 28% and 33%.

Using the calculator above, you can determine what your payment would be, and then determine whether it falls within your housing payment-to-income ratio. Don’t forget that you’ll need to include property taxes and insurance in your payment amount when figuring your ratio.

Just in case you thought there weren’t very many affordable homes in the Carson Valley, we’ve included links to homes under $250,000 with 3+ bedrooms.